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Selling goods on consignment

Answered according to Hanafi Fiqh by TheMufti.com
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Q. Can I buy stock from a supplier with the condition that if the stock cannot be sold, I will return it to the supplier?


A. The purchase and sale of goods/stock with the condition that the trader/purchaser can return the goods to the supplier/seller if they cannot be sold is inconsistent with the Laws of Islamic Business principles.

Instead, the supplier may offer a flexible returns policy to the trader allowing for the return of the goods if they are not sold. For example, the supplier may offer a returns policy that allows for the trader to return the goods within 30,60, or 90 days from the date of purchase if the goods are still in its original packaging and condition. In this way, if the trader does not sell the goods within the specified period of the time, the trader may return the goods to the supplier if the goods are its original packaging and condition.

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

This answer was collected from TheMufti.com, which is a fatwa portal managed by Mufti Ismaeel Bassa from South Africa.

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